Homes supply

PUBLISHED : Tuesday, 21 October, 2003, 12:00am
UPDATED : Tuesday, 21 October, 2003, 12:00am

Reining in the supply of new homes is the government's way of restoring public confidence in the property market. With the ubiquity of empty flats and residential property prices low, reducing the supply may be the most efficient method of stimulating the market. In the short run, though demand from speculative investors may increase, property prices will not drastically rise. With an existing surplus of 70,000 flats created by the government, the abundance of housing means that it will take time for the surplus to come even close to being a shortage.

Assuming demand is stable, we may see prices soar again, but not for a couple of years. These hopeful scenarios were based on one underlying assumption: that the government will keep its word and tighten supply. There must be a clear and exact policy.

NG CHUNG-MAN, Jardine's Lookout

Ferry protest

I read with amusement the article headlined 'Three-hour protest over late ferry from Macau', (October 20). Although the delay was not caused by the ferry operator, but rather fog and rubbish in the sea, it still offered a free ticket to the passengers.

This was not enough and a three-hour incident resulted. I sure hope none of those passengers ever need to travel by air in the USA where arriving only an hour late is considered lucky.